I have been having fun in San Francisco the past two days learning about real estate. Robert Kiyosaki outlined the cycle of Real Estate.
1. Financial Disturbance - dot bomb, 9-11, war, etc.
2. Expansion of prices - easy credit, greed, huge buyer demand
3. Euphoria - overestimate future returns, no concern for fudamentals,fools rush in
4. Financial Distress - prices reach peak, nothing is cheap, insiders take profit
5. Market Reversal - prices start to fall
6. Financial Crisis - panic rules the market, tightening monetary policy